Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold The following data are available for the quarter ending September 30, 2018 Cost Retail Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales $350,000 $ 505,000 880,000 1,260,000 44,450 53,000 23,000 1,225,0e0 Estimate ending inventory and cost of goods sold (average cost) ost-to-Retail Ratio Cost Retail Beginning inventory Plus: Net purchases Freight-in $350,000 505,000 1,260,000 880,000 44,450 53,000 23,000 1,795,000 Net markups Less: Net markdowns Goods available for sale 1,274,450 Cost-to-retail percentage 1,225,000 $ 570,000 Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold $ 1,274,450